Abstract

SMEs have played an important role in deepening of construction of socialist market economy in China. Their contribution rate to our country's economy is rising continuously, they also stimulate technical innovation. However, because of their small scale, credit margin and other factors and imperfect market mechanism, SMEs are facing a severe situation in the process of financing, the huge financing risk has become the core problem restricting the development of SMEs. This paper employed the KMV model to make an empirical analysis. Then, the author puts forward corresponding suggestions for the financing of SMEs in the future.

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